Discounted Cash Flow (DCF) Analysis Unlevered

The Charles Schwab Corporation (SCHW)

$71.87

-0.77 (-1.06%)
All numbers are in Millions, Currency in USD
Stock DCF: 384.96 | 71.87 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 8,61810,13210,72111,69118,52022,725.9527,887.0934,220.3341,991.8851,528.36
Revenue (%)
EBITDA 4,2615,7256,2615,3229,35311,834.3514,521.9717,819.9621,866.9326,832.98
EBITDA (%)
EBIT 3,9925,4195,9124,7188,18910,886.7613,359.1816,393.0920,116.0124,684.42
EBIT (%)
Depreciation 2693063496041,164947.591,162.791,426.871,750.922,148.55
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 64,21294,51690,767377,748116,924290,301.57356,229.98437,130.93536,404.74658,223.96
Total Cash (%)
Account Receivables 22,09923,20023,14667,94790,56580,518.1698,804.08121,242.80148,777.43182,565.25
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 32,53034,55739,220104,20191,472.60112,246.32137,737.82169,018.51207,403.15254,505.06
Accounts Payable (%)
Capital Expenditure -400-570-708-631-916-1,236.94-1,517.86-1,862.57-2,285.56-2,804.62
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 71.87
Beta 1.066
Diluted Shares Outstanding 1,429
Cost of Debt
Tax Rate 24.09
After-tax Cost of Debt 1.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.837
Total Debt 23,769
Total Equity 102,702.23
Total Capital 126,471.23
Debt Weighting 18.79
Equity Weighting 81.21
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 8,61810,13210,72111,69118,52022,725.9527,887.0934,220.3341,991.8851,528.36
EBITDA 4,2615,7256,2615,3229,35311,834.3514,521.9717,819.9621,866.9326,832.98
EBIT 3,9925,4195,9124,7188,18910,886.7613,359.1816,393.0920,116.0124,684.42
Tax Rate 35.51%23.13%23.60%23.28%24.09%25.92%25.92%25.92%25.92%25.92%
EBIAT 2,574.574,165.814,516.923,619.696,216.348,064.959,896.5212,144.0614,902.0118,286.30
Depreciation 2693063496041,164947.591,162.791,426.871,750.922,148.55
Accounts Receivable --1,10154-44,801-22,61810,046.84-18,285.93-22,438.72-27,534.62-33,787.82
Inventories ----------
Accounts Payable -2,0274,66364,981-12,728.4020,773.7225,491.4931,280.6938,384.6447,101.91
Capital Expenditure -400-570-708-631-916-1,236.94-1,517.86-1,862.57-2,285.56-2,804.62
UFCF 2,443.574,827.818,874.9223,772.69-28,882.0638,596.1616,747.0320,550.3325,217.3730,944.32
WACC
PV UFCF 35,916.7714,502.5416,560.6818,910.9121,594.68
SUM PV UFCF 107,485.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.46
Free cash flow (t + 1) 31,563.21
Terminal Value 578,080.71
Present Value of Terminal Value 403,417.09

Intrinsic Value

Enterprise Value 510,902.68
Net Debt -39,206
Equity Value 550,108.68
Shares Outstanding 1,429
Equity Value Per Share 384.96